This week major tracker fund player Vanguard threw down the gauntlet to its competitors by lowering the ongoing charges on 25 of its index tracker funds and exchange-traded funds (ETFs) by up to 15 basis points. The 25 funds now cost between 0.07 and 0.38 per cent, compared with 0.09 and 0.40 per cent previously.
Vanguard's announcement came the day after Fidelity claimed to have the cheapest tracker funds and has brought its range more in line with Fidelity's charges. The news follows the announcement from the Investment Management Association that July 2014 was the top month ever for tracker fund sales.